Mechelany Advisors’ MODEL PORTFOLIO has been running in a fully transparent way since January 1st 2014. Its Purpose is to implement the conclusions of our research analytical process in a portfolio managed using institutional liquidity, diversification, risk management and asset allocation processes. In our TRANSACTION UPDATES we keep our readers informed in real time of the transactions in our MODEL PORTFOLIO
Shopping in China
As China mainland is closed for the National Day Holiday, the Hong Kong market is logically volatile with foreigners selling and no domestic buyers. That provides an interesting opportunity for us.
We have re-instated positions in two Chinese bank and increased our exposure to ALI BABA
The Evergrande crisis is starting to be handled with a competing real estate developper bidding for its assets and the company stocks being suspended.
The Real estate sector is now bombed out seriously and starting to find a bottom, so today we decided to dip two toes in that sector through CHINA OVERSEAS LAND ( 688 HK ) and SUNAC CHINA ( 1918 HK ) which are both now extremely cheap.
SUNAC is particularly interesting, trading at 1.8x earnings and 11.(6 % yield. But the real interning factor is the very high open Short interest in the stock.
Shorting Natural Gas.
We also stared a new short position in Natural Gas. Yes we are in the middle of the European supply crisis and tensions are still prevalent. However, at current prices, a phenomenon of switching towards crude oil will intensify, keeping a lid on the the price of Gas. Moreover, the crisis is temporary by nature and we expect price mean reversion in the coming weeks.
Re-instating our Short NASDAQ
As Facebook is under pressure with most of the large tech, we also re-instated our Short Nasdaq.
As highlighted in our week-end Market review, Cryptos are in a space that deserves to be traded actively. Today, we shorted again the 5’000 ETHE US at 32.23 that we bought back only last week at 26.62
New Asset Allocation
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